More taxes in budget raise fears of greater burdens
The budget for 2023, presented by the President Ranil Wickremesinghe, on November 14, has drawn mixed reactions from Sri Lankans and various economic sectors. There are concerns that proposals would trigger price increases and further worsen the unbearable cost of living.
A cross section of representatives of various sectors including agriculture, fisheries, education, foreign job agents, and food importers were among those who reacted with a range of concerns.
T. B. Sarath, the president of the All Island Farmers Federation, said there should be greater focus on the market for agri produce and technology, rather than merely trying to entice youth into farming.
“There is no stable price or market for Sri Lankan farmers. The technology in agriculture is from the 1960s and is outdated. Further, Sri Lanka can aim for markets in South India or Africa. But no infrastructure was proposed in the budget.
“By the time of the next budget, either the money would remain in the Treasury, or distributed among ministers and their close relatives,’’ he said.
Mr. Sarath said Rs. 150 million is insufficient to revive the agricultural industry as the President suggests, since the industry has collapsed. He criticised the idea to explore exports of “Trailoka Wijayapatra”, (cannabis).
Jayantha Samarakoon, the president of the Coconut Grower’s Association praised the proposal to limit the fragmentation of coconut lands of less than one acre. It would result in preventing further depletion of coconut lands.
As for the proposal to increase exports, Mr. Samarakoon said planting of coconut saplings would generate a harvest only eight years later, the time for two Parliaments to change. Instead, he recommends providing pesticide, fertiliser and water for existing plantations.
Last year, coconuts exports brought in US$800 million, while US$650m has been earned up to September. The target for this year is US$900m.
Mr. Samarakoon he expects coconut production to drop next year.
The president of the Traders Association of the Dambulla Economic Centre, Shantha Ekanayake said the Cess means that prices of potato, onion and garlic, currently at Rs. 175, Rs. 280 to 300 and Rs. 400 to Rs. 420 respectively, will increase.
A similar view was shared by Prabath Susantha, the deputy chairman of the Traders Association of the Manning Market, who said prices will increase in commodities currently selling at Rs. 180, Rs. 280, and Rs. 390.
However, the spokesman of the Essential Food Commodities Importers and Traders Association, Nihal Seneviratne, said the increased Cess does not impact essential commodities, and does not expect price increases.
Ranjith Withanage, the chairman of the National Movement for Consumer Rights Protection, said only a small amount of the budget proposals would be actually implemented, as seen in previous budgets.
“The budget should be simple, not complex. The proposals have been made so complex to deceive people,’’ he said.
He also criticised higher taxes, noting that taxes should be imposed as, “collecting pollen without hurting the flower”. But, the budget imposes taxes “hurting everyone”.
Responding to the proposal on the inland fisheries industry, the convener of the National Fisheries Solidarity Movement, Herman Kumara, said it was an stated that attempt to establish aquaculture and bring in foreign investment.
“There is no attention paid to the basic needs of the majority of fisherman in the budget. We still do not receive enough kerosene oil. Some get only 30 litres for the entire month,’’ he said.
The imposition of Cess had increased the price of butter, which does not affect the bakery industry much since only 10% of bakers use it, while the rest use margarine, said N. K. Jayawardena, the president of the All Island Bakers Association.
“We cannot even provide the public nutritional food, because of these price increases,’’ he said.
“I do not know why the Government is ignorant. The University of Peradeniya has a successful post-graduate program for doctors, too,’’ the president of the Federation of University Teachers Association, Prof. Shyama Bannaheka said, regarding the proposal to establish post-graduate programs in Peradeniya, Ruhuna and Jaffna Universities.
He does not favour the idea of an extra medical faculty in UvaWellassa University, noting that there are 11 medical faculties already and suggests expanding those faculties.
The proposal to increase university admission by 10% was also criticised by Prof. Bannaheka, due to the lack of resources, such as canteens and hostels and that within the past two Advanced Level intakes, admission was increased.
Citing an example of the dental faculty of the Peradeniya University, he said admissions have been increased from 80 to 120, a 50% increase, but there was no increase in resources. “The education and health sector cannot have blanket decisions.’’
Prof. Bannaheka supports the quality assurance and accreditation board for university degrees idea, but it was proposed without consultations.
Wimal Piyatissa, the executive secretary of the Joint Teachers Services Union, supported the proposal of introducing internet facilities to schools, since it would increase students’ knowledge of English and globalisation, but there should be a limit for its use compared with classroom lessons.
With the increase in Cess, Mr. Piyatissa said that a stationery bag, containing all equipment required for a student, has increased from Rs. 2,000 to Rs. 5,000, forcing children to use one exercise book for three subjects.
“Education affects the country in the long-term and thereby a system to provide stationery items at a maximum concessionary price should be proposed to the Government,’’ he suggested.
Regarding the proposal to increase foreign scholarships, he said that it results in an outflow of forex. Instead, he suggests teaching students in Sri Lankan universities and sending them for foreign employment.
“What can Rs. 200 million do with all the price increases in goods and services?”, Mr. Piyatissa asked, in regard to the allocation for improving facilities in rural schools, saying that most run on private donations.
“The Government does not have the income for the expenditure. Proposing these things is also a waste of time.’’
Supun Lahiru Prakash, convener of the Biodiversity Conservation and Research Circle, said the proposed international university for climate change is not a priority, Rather, the focus should be on schemes such as waste management.
However, he supports the proposal to increase forest coverage, hoping that it would help achieve the 32% forest coverage promised by Sri Lanka in the National Determined Contribution in 2013.
Mohammed Faroos Marikkar, president of the Association of Licensed Foreign Employment Agencies, said of the Rs. 50 million allocated for training for foreign employment, “not even a support of a rupee would be received”.
He continued to blame the Government for promoting countries like Japan or Korea for foreign employment rather than West Asia, which has a larger labour market.
Commenting on the passport fee increase, he said it was unfair for the poor who hope to seek overseas jobs.
While pleased with the acceptance of its proposals to provide post-graduate opportunities for doctors and malnutrition, the Government Medical Officers Association (GMOA) said it was disappointed over the proposal for a quality assurance board for university degrees.
“Such a board was appointed previously, too, but it threatened the independence of the University Grants Commission and the Sri Lanka Medical Council. If this board bears a similar situation, we will oppose it,’’ the media spokesman of the GMOA, Chamil Wijesinghe said.
However, he praised the proposal of a medical faculty in Uva-Wellassa University and the upgrading of Badulla, Kurunegala and Polonnaruwa Hospitals as teaching hospitals.
There is no stable price or market for Sri Lankan farmers. The technology in agriculture is from the 1960s and is outdated. Further, Sri Lanka can aim for markets in South India or Africa. But no infrastructure was proposed in the budget.